Benefited from the economic growth in urban-rural fringe zones and rural
areas as well as the growing mobility demand, the low-speed electric
vehicle sales have been on a steady rise over the past years, up 41.6%
from 1.232 million units in 2016 to 1.744 million units in 2017.
However, the LSEV industry will still face relatively great policy risk,
especially Standardization Administration of the PRC will formulate more
stringent LSEV standard, which will be formally issued before 2019.

Regarding competition pattern, BYVIN, YOGOMO, and Shifeng Group are the
top 3 players in the LSEV market. BYVIN, as a market bellwether, is the
first enterprise with annual output of more than 202,000 units by
adopting multi-brand (including LEVDEO) strategy to expand its market
share in all market segments; YOGOMO, the largest LSEV enterprise in
Hebei province, boasts four brands (YOGOMO, CYAHOR, YGM, and LaVie) and
produces about 120,000 units annually; Shifeng Group, majored in
agricultural three wheeler, also sets foot in LSEV field with capacity
of 200,000 units, and ranks third with sales volume of 110,000 units in
2017.

Along with being gradually clear of LSEV industry standard and policies,
some companies, such as GreenWheel, Henan SD, YOGOMO and Lichi jumped
out of LSEV field and entered micro high-speed electric vehicle industry
and have obtained the license for the production of battery electric
sedans or special vehicles. Meanwhile, there are also some makers
slowing down the investment for LSEV, like YOGOMO's 150,000 unit/a LSEV
projects in Wuxi and Baoya's 500,000 unit/a NEV base in Xiangyang city
do not realize operation as planned.